IDC said IoT would grow at a compound annual growth rate (CAGR) of 7.9 percent between now and 2020, to reach $8.9 trillion.

"The momentum of the Internet of Things is driven by a number of factors. There is no doubt that business and consumer demand exists and will continue to expand for IoT solutions," said IDC analyst Vernon Turner.

IDC said market enablers for the rise of IoT include the ongoing development of smart cities, cars and houses and a growing culture of personal connectivity.

IDC said however that some challenges had to be overcome to see continuing sustained IoT growth. It said these challenges were on the supply side, including a lack of standards, global scalability, and a "nascent ecosystem for application development".

And on the demand side, said IDC, challenges included a lack of awareness and other IT/mobility priorities.

Despite these challenges, IDC expects the installed base of the Internet of Things will be approximately 212 billion "things" globally by the end of 2020.